Global Credit
Our global credit strategies – investing in corporate bonds - aim to deliver strong performance for a given level of investment risk. They have an emphasis on income and yield.
Our philosophy
Our global credit strategies invest in bonds of companies with stable or improving businesses.
- The main driver of our fund performance is the careful selection of the companies that issue bonds and of the bonds themselves
- We use a regional approach: we break down the investment universe into US, Europe and Emerging Markets to capture global opportunities and to be more diversified
HSBC strengths
- Many of our global credit strategies use customised benchmarks targeting more attractive returns for a given level of risk
- We have created dedicated research tools that are critical to our investment decisions
- Our team of over 40 sector specialists who cover the global credit universe is not replicable by many firms
Risk Warning
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. The value of the underlying assets is strongly affected by interest rate fluctuations and by changes in the credit ratings of the underlying issuer of the assets. Investments in foreign markets involve risks such as currency rate fluctuations, potential differences in accounting and taxation policies, as well as possible political, economic, and market risks. These risks are heightened for investments in emerging markets which are also subject to greater illiquidity and volatility than developed foreign markets. Investments in emerging markets are by their nature higher risk and potentially more volatile than those inherent in some established markets. Economies in Emerging Markets generally are heavily dependent upon international trade and, accordingly, have been and may continue to be affected adversely by trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which they trade. These economies also have been and may continue to be affected adversely by economic conditions in the countries in which they trade. Investment in non-investment grade bonds may produce a higher level of income than investment grade bonds, but carry increased risk of default on repayment. The value of the Bonds is strongly affected by interest rate fluctuations and by changes in the credit ratings of the underlying issuer of the assets. The performance of bonds, gilts and other fixed interest securities tends to be less volatile than those of shares of companies (equities). However, there is a risk that both the relative yield and the capital value of these maybe reduced if interest rates go up. Income offered by bonds often reflects, in part, the risk rating of the issuer. The underlying funds can invest in non-investment grade bonds, which may produce a higher level of income than investment grade bonds, but carry increased risk of default on repayment. This may affect the level of income the investor receives and/or the capital value of their investment.